The Minister of Finance, Dr Cassiel Ato Forson, has hailed the passage of the Earmarked Funds Capping and Realignment (Amendment) Bill, 2025, by Ghana’s Parliament, aimed at bolstering key national sectors.
This landmark legislative reform, championed by the Minister of Finance and Member of Parliament for Ajumako Enyan Essiam Constituency, Dr. Cassiel Ato Forson, removes crucial funds from the Schedule of the Earmarked Funds Capping and Realignment Act, 2017 (Act 947).
The amendment ensures that essential national programs receive full financial allocations, reversing previous constraints that limited their funding.
“This crucial amendment expunges several key funds from the Schedule of the Earmarked Funds Capping and Realignment Act, 2017 (Act 947), including: National Health Insurance Fund, Ghana Education Trust Fund (GETFund), Road Fund, Mineral Income Investment Fund, Ghana Infrastructure Investment Fund, Transfers to Ghana National Petroleum Corporation (GNPC) from petroleum revenue”.
Dr Cassiel Ato Forson, Finance Minister
Dr. Ato Forson, expressing his enthusiasm for this legislative breakthrough, described the amendment as a “momentous milestone” in Ghana’s fiscal management, reinforcing the government’s commitment to prioritizing education, healthcare, and infrastructure development.
Implications of the Amendment
According to Dr Forson, the passage of this bill ushers in substantial changes in several critical sectors, addressing financial bottlenecks that have plagued service delivery under the previous NPP administration.
In outlining the benefits of the legislative move, Dr Forson emphasised that the removal of the cap on the Ghana Education Trust Fund (GETFund) ensures that dedicated funds will be available to finance free secondary education.
Additionally, the Finance Minister noted that it introduces provisions for free tertiary education for Persons with Disabilities, marking a significant stride toward inclusive education.
The move, he also stressed, guarantees the sustainability of the government’s flagship Free Senior High School (SHS) program and broader educational initiatives.
Enhancing Healthcare Delivery, Securing Road Infrastructure Development
Here, Dr Forson strongly posited that by uncapping the National Health Insurance Levy, the government will have greater financial flexibility to cater to healthcare needs.
This includes the timely payment of claims, procurement of essential medicines and vaccines, and the implementation of Free Primary Healthcare.
Additionally, the amendment ensures resources for the Ghana Medical Care Trust and mitigates funding gaps left by dwindling external support, such as that from the United States Agency for International Development (USAID).
Moreover, the Finance Minister indicated that the unshackling of the Road Fund guarantees that all road maintenance funds will be utilized exclusively for their intended purpose.
This move is expected to improve the nation’s road infrastructure significantly, ensuring prompt and sustained maintenance of existing road networks and the completion of ongoing projects.
Financial Stability for Investment Funds
Additionally, Dr Forson argued that the restructuring of revenue streams for the Mineral Income Investment Fund, the Ghana Infrastructure Investment Fund, and the Ghana National Petroleum Corporation (GNPC) ensures these institutions receive adequate financial support.
This, according to him, will enhance their operational efficiency and long-term sustainability, promoting economic growth and national development.
Dr. Ato Forson underscored the broader implications of the amendment, emphasizing its role in fostering economic resilience and ensuring that critical social services are adequately funded.
By eliminating the capping mechanism, the government effectively increases financial allocations to vital sectors without having to rely heavily on external borrowing.
“This amendment represents a massive step toward improving critical sectors such as education, healthcare, and infrastructure and delivering on commitments made to Ghanaians”.
Dr Cassiel Ato Forson, Finance Minister
The passage of this bill is expected to be welcomed by stakeholders across various sectors, including educationists, healthcare professionals, road contractors, and policymakers, who have long advocated for increased funding to sustain and expand essential services.
The passage of the Earmarked Funds Capping and Realignment (Amendment) Bill, 2025, is in fulfilment of the NDC’s administration campaign promise ahead of the 2024 general elections and marks a transformative shift in Ghana’s financial policy framework.
By allowing key funds to retain their full allocations, the government has taken a decisive step toward addressing chronic funding shortages in vital sectors.
The move is expected to have a far-reaching impact, ensuring sustained investments in education, healthcare, and infrastructure while strengthening the nation’s fiscal sustainability.
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